President of the Contractors Association: “I Hope the Government Falls and Professional Ministers Are Appointed, Not Gur Hasidim”

An unprecedented wave of criticism was directed at the Israeli government yesterday (Wednesday) during the opening of the annual conference of the Tel Aviv and Central District Contractors Association. Association Chairman Amit Gottlieb attacked Finance Minister Bezalel Smotrich for urging the public not to buy apartments, calling it “a dangerous statement that will only lead people to purchase the same homes later at higher prices.”

President of the Israel Builders Association, Roni Brik, went even further, calling for the government’s dissolution and new elections in light of its housing policies. “Government ministries don’t talk to each other,” he said. “In such a situation, I hope the government falls and that elections are held, and I hope professional ministers are appointed—not Gur Hasidim. The way things are run here is like in a third-world country. No one seems to care what happens to young couples.” Brik made his remarks at the association’s annual conference held in Eilat.

Brik also criticized Israel’s institutional investors: “I don’t understand how, in the past two years, Israeli institutions have been buying apartments in Berlin, lots in Lisbon, and projects in Athens, instead of realizing that after every war comes a wave of prosperity in our real estate market. This is money being diverted to markets whose stability is questionable, instead of staying here. The general public is also missing an opportunity. In the coming years, Israel will develop a long-term rental housing market. Investment managers must lead a cultural change and open investment channels for Israelis in our sector. Institutional investors should become domestically oriented, investing in Israeli real estate and infrastructure.”

Amit Gottlieb, Chairman of the Tel Aviv and Central District Contractors Association, delivered an equally forceful address, directing his criticism squarely at Finance Minister Smotrich. “It’s a very dangerous statement,” said Gottlieb. “Throughout history, whenever a minister told people not to buy homes, the public waited—and ended up paying more. Instead of stimulating the market, he’s paralyzing it.”

“Israel’s construction industry is the backbone of the country,” Gottlieb continued. “It drives the economy, employs tens of thousands of workers, and builds our cities, communities, and future. Yet while we work triple shifts, the government operates at one-third capacity. Our industry deserves a full-time minister—someone who wakes up every morning thinking about how to advance projects, remove obstacles, and build Israel. Real estate cannot be taken for granted.”

Gottlieb warned that if the government does not act quickly, the sector could collapse. “Contractors are closing registration files, companies are going bankrupt, and projects are grinding to a halt. We’re seeing a disturbing trend: contractors simply aren’t applying for building permits—not because they don’t want to, but because they can’t. High interest rates, expensive financing, and excessive fees and levies prevent them from paying and obtaining permits.”

Finally, Gottlieb appealed directly to the Governor of the Bank of Israel to cut interest rates: “The interest rate is choking the industry. It kills entrepreneurship and harms ordinary citizens—reserve soldiers returning from the front who want to buy a home, and young couples dreaming of a roof over their heads. When interest rates are high, the market slows, fewer homes are purchased, housing starts drop, and the supply-demand gap widens. Instead of fighting inflation, the interest rate is creating it.”